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djverab [1.8K]
3 years ago
12

The Adams Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimati

ng a company’s cost of internal equity. Adams’s bonds yield 10.28%, and the firm’s analysts estimate that the firm’s risk premium on its stock over its bonds is 4.95%. Based on the bond-yield-plus-risk-premium approach, Adams’s cost of internal equity is:
Business
1 answer:
tino4ka555 [31]3 years ago
5 0

Answer:

the cost of internal equity is 16.17%

Explanation:

The computation of the cost of internal equity is shown below:

= Yield of the bond + risk premium of the firm

= 10.28% + 4.95%

= 16.17%

Hence, the cost of internal equity is 16.17%

Basically we add the two things so that the cost of internal equity could be determined

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4 0
3 years ago
Suppose that during the Great Depression long-run aggregate supply shifted left. To be consistent with what happened to the pric
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Answer:

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Answer:

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4 0
3 years ago
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Answer:

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8 0
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If you have 900 dollars and you save it for ten years woth eight percent interest, what will be it’s future value?
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